Increase In Properties For Sale

• News
• Published: 10 Mar 2010 in Money and Mortgages

More properties were put on the market in February, leading to housing supply outstripping demand, research has showed.

The number of people selling their home rose faster than the figure for potential new buyers last month, the Royal Institution of Chartered Surveyors (RICS) said.

The group said that one of the key reasons for a recovery in housing prices was the previous imbalance between demand and supply.

The housing market in January was weak on the back of severe winter and the end of the Government's stamp duty holiday, but the market in February rebounded in both the selling and buying sides, the group said.

Around 15% more chartered surveyors reported a rise in new instructions to sell property last month compared with 5% who saw a fall in January.

While 7% more surveyors reported a fall in new buyer inquiries, 17% said they saw house prices rising during the month, which was down from 31% more in January.

RICS spokesman Jeremy Leaf said: "Most market indicators are still positive and consistent with further house price increases.

"However, the magnitude of the gains going forward is likely to continue to ease reflecting the fact that new supply coming onto the market is starting to outstrip fresh demand."